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I revisited HAS this weekend, expecting to find that it had improved its
RM rating significantly this quarter. I came up with a 3Q99 rating of 39
for HAS (post 5450), and after putting the numbers in for 4Q99, it only
bumped up to a 40. Add to this the fact that I gave two discretionary
points in the 4Q99 analysis that I didn't give in 3Q99, and this ends
up being a loss of one point on the financials! The spreadsheet is below;
feel free to double-check any and all numbers.

There were some pretty drastic changes in the RM criteria between 3Q
and 4Q, but these seem to be a result of the Consolidation Program
announced this quarter. There is a $64M charge for this program on the
income statement for 4Q99; excluding this charge from the numbers would bump
net margins to 7.7%. This results in a total RM score of 44, which is more
along the lines of what I expected. The Consolidation Program will continue
into at least 1Q2K, so it's something to keep in mind when looking at HAS's
financials.




Financial AnalysiCompany Being Evaluated                        Competitor #1   Competitor #2  Competitor #3

                     Hasbro                                        Mattel      <Fill in Name> <Fill in Name>
                      HAS                                           MAT
                 Current Period Year-ago PeriodYear-over-Year  Current Period  Current Period Current Period
                     4Q '99         4Q '98        Growth           4Q '99          <Date>         <Date>
Income Statement . . .
  Sales               1,591,112      1,304,079     22.0%             1,770,590
  Cost of Goods S       652,686        512,285     27.4%               987,834
  Net Income             57,699        131,789    -56.2%               (18,421)
  Shares Outstand       196,395        202,462     -3.0%

Balance Sheet . . .
  Cash & Equivale       280,159        177,748     57.6%               275,024
  Current Assets      2,131,652      1,789,986     19.1%             2,420,027
  Short-term Debt       714,669        372,509     91.9%               372,722
  Current Liabili     2,071,327      1,366,300     51.6%             1,817,524
  Long-term Debt        420,654        407,180     3.3%              1,183,835
                                                                              1              0              0Competitors
Margins & Ratios . . .
  Gross Margins            59.0%          60.7%    -1.7                   44.2%                                    44.2%
  Net Margins               3.6%          10.1%    -6.5                   -1.0%                                    -1.0%
  Cash-to-Debt              0.25           0.23    8.2%                    0.18                                     0.18
  Net Cash             -855164.0      -601941.0     N/A              -1281533.0                               -1281533.0
  Fool Flow Ratio           1.36           1.62   -15.9%                   1.48                                     1.48


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Ranking Rule Makers

1) Brand          Points (0-1)                                3) Financial Dire Points (0-3)
Familiarity                    1                              Sales Growth                   3
Openness                       1                              Gross Margins                  1
Optimism                       1                              Net Margins                    0
Legitimacy                     1                              Shares Outstandin              3
Inevitability                  1                              Cash-to-Debt                   2
Solitariness                   0                              Fool Flow Ratio                3
Humor                          1                              Expansion Potenti              3
  Subtotal                     6                                Subtotal                    15

2) Financial Loca Points (0-2)                                4) Monopoly Statu Points (0-4)
Mass Market Habit              1                              Gross Margins                  4
Gross Margins                  1                              Net Margins                    2
Net Margins                    0                              Net Cash                       4
Cash-to-Debt                   0                              Fool Flow Ratio                2
Fool Flow Ratio                0                              Convenience                    2
Your Interest                  2                                Subtotal                    14
  Subtotal                     4
                                                              5) Your  Enjoymen              1

                   Total Score               40 Second Tier

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